Rich people pay lower tax rates than middle class people and much of their money is not taxed as income. Lower class people may well have no income taxes in the end--if they do their taxes--but they get 25-40% taken out off the top on barely enough income to get by, and they have little to no money socked away to take care of them when they fall short. Moreover, they are offering no interest loans to the government until they get back the income tax taken from their salary, and for payroll taxes, they may get none of that back for decades, depending on when they use Medicare and Social Security primarily.
The rich commit crimes on a vast scale. When someone robs someone on the street for $50, he gets $50, makes his area worse, and gets an increased shot at a long time in the joint; when someone helps send the entire economy into the Great Recession by lying about CDO's as a safe investment in 2006-7, he helps send millions to the unemployment lines and out of their homes, robs investors of their money, and gets off scot-free, no jail time.
I don't understand your first sentence. Tax rates are marginal. Higher income pays higher tax. Any money you earn in a particular year is taxed as income. You seem to want me to pay tax again the following year if I save that money rather than spend it. So it we both earn $250K this year and pay tax on it and you spend your on vacations while I save mine, you want the Government to tax me next year on my net worth even though we have the same income. Your plan would incentivize everyone to spend their money rahter than saving it. The people are just as rich becuase they had the goods and sevices earlier rather than later.
Yes a wealthy person can commit a major crime but the vast majority of crimes are committed by poor people. This isn't debatable. And the ast majority of violent creimes are committed by people who are not rich.
Yes a wealthy person can commit a major crime but the vast majority of crimes are committed by poor people. This isn't debatable. And the ast majority of violent creimes are committed by people who are not rich.
Some people would consider stealing billions from a pension funds/banks, leaving many lives in ruin, a violent crime.
I don't understand your first sentence. Tax rates are marginal. Higher income pays higher tax. Any money you earn in a particular year is taxed as income. You seem to want me to pay tax again the following year if I save that money rather than spend it. So it we both earn $250K this year and pay tax on it and you spend your on vacations while I save mine, you want the Government to tax me next year on my net worth even though we have the same income. Your plan would incentivize everyone to spend their money rahter than saving it. The people are just as rich becuase they had the goods and sevices earlier rather than later.
Rich folks can make a bunch of income off qualified dividends that is not taxed at ordinary income rates. They can also make a majority of their income in stock bonuses - not taxed as ordinary income. On top of this, it's much easier for high earners to take advantage of 401ks & HSAs. Add some rentals to the equation and you can deduct depreciation and mortgage interest.
Why do you think so many CEOs boast about having a salary of $1? They don't want the tax liability. If you taxed earned income at 0%, and capital gains at %50, you would see massive salary increases among execs.
Not saying this is good or bad, it's just the reality.
Do any have cell phones? Cable TV? Do they eat Mac and cheese?
Mac and cheese is cheap so yes I imagine most of them do eat mac and cheese. These people do not have the latest iphone or whatever.. they either have basic flip phones that are from the government or they have cheap cheap android phones....how do I know? Because I see pictures of their documents sometimes and the photo qualities are just down right terrible. Sometimes people come in to drop off stuff off or pick up, i can tell you, their cars are literally falling apart.